Integrated Research (IRI) H2 2025 earnings summary

Executive summary

• FY25 was marked by a strategic shift to product-led growth, with significant investment in new product development and commercialization, including High-Value Payments, Prognosis Elevate, and the AI-powered Iris.

• Revenue performance remained steady on a pro forma basis, but statutory results declined due to softer renewals, delayed new business, and insufficient expansion revenue.

• The company is transitioning from reliance on contract renewals to a product-led growth strategy, focusing on innovation and AI integration.

• Stronger second half performance was noted, with improved statutory revenue and EBITDA compared to the first half.

Financial highlights

• Statutory revenue for FY25 was $68.3m, down 18% year-over-year; pro forma revenue was $74.3m, down 1%.

• EBITDA declined 35% to $15.9m; NPAT fell 51% to $13.4m.

• Cash at bank at year-end was $40.6m, up 27%, with no debt and net assets exceeding $100m.

• Fully franked dividend of $0.02 per share, unchanged from the prior year.

• Operating expenses reduced to $54.9m; income tax expense increased to $5.1m.

Outlook and guidance

• No specific revenue or profit guidance for FY26 due to uncertainties in renewals and new product adoption.

• Profitability is expected to decline over the next two to three years as investment in product-led growth accelerates.

• Renewals book for FY26 is expected to be softer than FY25, with more new product releases and accelerated development planned.

• Medium to long-term sustainable growth targeted through new revenue streams and consumption-based pricing.